Current fuel economy standards would save drivers money
A new report from Consumers Union says the current fuel economy standards will save consumers money immediately for drivers who finance their vehicle purchase and over the life of the vehicle for those who pay cash. For cash buyers, car owners will see net savings in the fourth year of ownership; truck owners in the third year.
The report found that the lifetime net savings for compliance with the MY 2025 standards 55.2 mpg for cars and 39.9 mpg for light trucks is $3,200 for car owners and $4,800 for truck owners. That is based on the Energy Information Administrationês estimate that fuel will start at around $3.00 per gallon in 2025.
When the compliance costs for CAFE are spread over the term of a typical loan between five and six years the annual fuel savings outweigh the annual costs in all years, the report says.
The Consumers Union (CU) report is an updated version of one done in early May, before the draft technical assessment report released by federal agencies in July (the midterm review required for the CAFE standards). That report said that automakers will likely fall short of the 2025 goal because of consumersê increasing preference for gas-guzzling light trucks in an era of low gas prices.
The CU savings estimates changed since its previous report in May because several key assumptions in the federal study changed: lower technology costs, lower lifetime miles driven, lower fuel efficiency for trucks and higher fuel efficiency performance for cars.
NADA says the effect the fuel economy standards will have on vehicle prices will price some consumers out of the market. NADA plans to submit comments on the federal draft report.Download Bulletin PDF